In 2022, the U.S. experienced a total of 18 weather and climate-related disasters, as reported by NOAA National Centers for Environmental Information (NCEI). These disasters, ranging from droughts to hurricanes, not only pose risks to lives and properties but also disrupt the environment.

As of June 2023, we’ve already had nine confirmed natural disasters, according to the NCEI report, putting us on track to meet or surpass last year’s count. With severe weather and flooding incidents on the rise, it raises questions about the potential impact on car insurance rates.

While we’ll address that question shortly, it’s essential to understand that your insurance coverage should always match your needs, depending on your location. We spoke with experts from our HiRoad insurance team, and here’s what they had to say.

Natural Disasters, Location, and Insurance Rates:

When you’re getting a car insurance quote, the insurer typically asks for your mailing address and a garaging or location address. This location address, where you park your car, matters significantly because it helps insurers determine your rate accurately.

Factors like local accident statistics, your driving habits, and the type of vehicle you drive all influence your insurance rate. Another significant factor is the environment – climate, geography, and proximity to bodies of water can impact your rate. If you live in an area prone to natural disasters or severe weather, insurers may charge higher rates to compensate for potential losses.

One way to mitigate increased rates is by considering telematics-based car insurance. Compared to traditional insurance, telematics offers a tech-savvy approach to lower your insurance costs without sacrificing coverage.

Does Car Insurance Cover Weather Damage to Cars?

Yes, car insurance can cover weather-related damage to your vehicle. However, it’s important to distinguish between typical weather-related accidents and damage caused directly by severe weather events. Here are some common questions regarding car insurance coverage for natural disasters:

• Does car insurance cover hail damage? Yes, comprehensive coverage typically covers repairs for hail damage, provided you have this coverage on your policy.
• Does car insurance cover wind damage? High-speed winds that damage your car are usually considered weather-related, falling under comprehensive coverage.
• Does car insurance cover fire damage? Comprehensive coverage can help with fire-related damage to your vehicle, which is crucial for those living in areas prone to wildfires.

Weather-Related Accidents vs. Damage from Weather:

It’s essential to distinguish between accidents that occur in severe weather and damage caused directly by weather events:

• If you’re in a car accident due to severe weather, such as hydroplaning during heavy rain from a tropical storm, the incident falls under collision coverage. To have assistance with damages to your car, you’ll need collision coverage on your policy.
• On the other hand, if your car is damaged while parked at home during a hailstorm, this damage is considered weather-related and falls under comprehensive coverage.

As you consider your insurance coverage, remember to think about where you’ll be driving and parking your vehicle. Adding comprehensive and collision coverage to your policy can provide valuable protection.

Preparation with a Severe Weather Car Kit:

Being prepared for unexpected weather moments can be a lifesaver. Consider adding items like warm clothing, tire chains, a tow rope, sand or cat litter for heavy snow; evacuation maps, batteries, spare clothing, and waterproof bags for important documents during severe rain and wind; and a portable fire extinguisher and an escape tool in case of fires.

In summary, having the right insurance coverage is crucial to protect your vehicle from weather-related damage. While comprehensive and collision coverage may seem costly, there are ways to save on your insurance, such as practicing safe driving habits. Telematics-based insurance, like HiRoad, rewards mindful drivers with monthly savings without compromising coverage. So, don’t let the rainy days catch you off guard – be prepared and insured for whatever comes your way.